8 Passive Income Ideas 2021 You Must Know

Passive income ideas
Ways to generate passive income from home

What is Passive Income?

Before we dig into passive income ideas, it is a good idea to clear up its meaning. Also known as residual income, it is the money you earn without working for it actively. Examples can include rental properties, blogs, or being a silent investor, etc. Most people work in hectic jobs, but passive streams of income are all about getting paid even when do not have a typical 9 to 5 job.

Ways to Generate Money Passively

Most people choose passive earning and there is nothing wrong with it. So, here are some ideas to generate a passive revenue stream that you need to know.

Invest in high dividend stocks:

Dividend stocks are the most tried and recommended way to earn money passively. You will have to do plenty of research on it and invest a significant amount of money. If you consistently invest money in these stocks, you can get a nice residual income over time. Build a high portfolio of dividend stocks, you can earn at a rate higher than what you get from bank investments. Also, as dividend stocks are stocks there is always a possibility for capital appreciation. Thus, in this way, you can earn passive money through two sources- dividends and capital gains.

Passive Income Ideas
Invest in high dividend stocks

Write an e-book:

Writing an e-book is a mainstream passive income online idea. It requires a lot of work and time, but once it is created and marketed it can generate revenues for years. You can either sell it or affiliate with a website that provides content related to your e-book.

Write and edit the book, create an attractive cover, and then upload on programs such as Amazon’s Kindle Direct Publishing.

Write an e-book

Rental properties:

Investing money in rental properties is a fantastic way to earn passively. There are a lot of ways to invest money in rental properties. However, it depends upon your financial interests and goals. You can be a partner in a large commercial or residential building, or you can buy homes and be a landlord. And the best part is that you can even do it online as the internet has made investments in rental properties easy.

Invest in rental properties

Affiliate marketing:

Affiliate marketing is a new idea in earning residual income. It requires you to have a website or platform where you can promote other companies or products. When someone uses your affiliate link to buy a product or sign up for something, you get paid. You can start your work by finding any affiliates that work in your niche. You can also start an affiliate business using social media. It is one of the smartest and effective passive income ideas you can try in 2021.

Affiliate Marketing

Display ads:

Another way to earn passive income online is by displaying ads. You can earn money through it even when you are asleep. Many people earn more than $1,000 per month through this. Advertisers are always paying to promote their products. You can be the medium through which ads reach customers. You can get paid a ridiculous amount of money if you increase the traffic of ads.

Displaying advertisements

Start a blog:

If you are passionate and knowledgeable about something, share it with the world. As your traffic increases, you can finance your blog by mentioning affiliate products or services, displaying ads, or by selling your product. Starting a blog is a perfect side hustle, you can do it on your own time and can unlock tons of new opportunities.

Passive income ideas
Start a blog

Create software:

Technically skilled! If you have the skill to create software, then create a code that people pay to use. If not, you can hire someone else to create software. Believe me, there is plenty of profit in this one. You can sell it as a passive revenue stream. You can create mobile apps, WordPress plugins, or digital applications.

Create new software

Invest automatically in a stock market:

If you are not interested in dividend stocks then you can earn passively through investments in stocks. You can invest in many ways through consulting with Robo-advisor. Robo-advisor is a financial robot advisor. You must answer a few questions, set up an account, and give it a to-go. You can set up automatic investments and they will handle the rest for you. One of the most popular Robo-advisor is Betterment. They charge one of the lowest fees and make it easy to invest.

Invest automatically in a stock market

These are the best 8 passive income ideas you can try this year. We hope there is something on the list for you.